Al Jaber gets US$300m for Shah Gas project

AJES is in the middle of early work on the project. Picture illustrative only.

RELATED ARTICLES: Oman planning massive spend on oil projects | Arabtec: Oil and gas regions offer key contracts | US$1.8bn pipeline contracts awarded in Kuwait

The energy project division of Al Jaber Group has secured US$300 million to finance the Shah Gas project in Abu Dhabi from the emirate’s top Islamic bank.

Abu Dhabi Islamic Bank announced the payment to Al Jaber Energy Services, according to ADIB in a note to the Abu Dhabi Stock Exchange.

The EPC contractor is in the middle of early work on the Shah plant on behalf of Abu Dhabi National Oil Company, the client. Work includes the grading and leveling of the site and the grade and surface of the principal roads, installation of the security fence and the design and construction of a four-lane carriageway among other tasks.

The contract value is US$299.2 million and work is due for completion in August next year. The project was awarded by Abu Dhabi Gas Development Company and is part of the US$12 billion Shah sour gas field development.

Story continues below

Advertisement

FEATURED COMMENT very powerfull and good contractor who is able to achive result in time frame   4 Comments Read more comments »

Tirad Mahmoud, CEO of ADIB, said: "ADIB feels pleased to participate in such large infrastructure development projects in the UAE and will work closely with Al Jaber Group to bring this projects to fruition."

Al Jaber Energy Services works on projects related to oil, gas and petrochemicals as well as power and water, including pipelines. It has worked on a number of big projects in the region, including the MASDAR Development Project and the expansion of the Abi Dhabi International Airport. Ongoing work includes the Al Raha Gardens Projects.

Civil infrastructure projects and oil-related announcements in the Middle East have been plentiful in the last quarter. In July, the finance ministry of Oman confirmed it was to spend US$3.5 billion on oil projects at the end of the year.

In the same month, Saudi Aramco, Saudi Arabia’s largest oil producer, awarded seven contracts for engineering, procurement and construction of its planned refinery in Yanbu as part of its drive to boost capacity. Recipients included SK Engineering & Construction, Tecnicas, Daelim and Saudi Services.

At the beginning of August, the state-run Kuwait Oil Company awarded two contracts worth a combined KD520 million to Hyundai Engineering & Construction (HEC) and Petrofac to design and build pipelines. Last week the country’s oil minister, Ahmad Abdullah Al Sabah, told reporters that there is “big money involved” in the country’s four year development plan for the commodity, believed to be around US$35 billion.

Also this month, J Ray was awarded a US$350 million contract in Abu Dhabi for construction of new platform and upgrade of existing water injection facilities on an offshore site.